Payment devices such as magnetic stripe-based credit cards may be targeted for theft and misuse. Readily available magnetic strip readers can be used by a thief to obtain account information from the card. Chip based cards that use electrical contacts to transfer information to and from a reader offer higher levels of security, and both magnetic strip and contact-bearing cards are further protected by the fact that the card must be in physical contact with the reader.
Contactless cards use radio signaling to exchange information with a host system, and offer substantial convenience since the card may be used without bringing it into direct contact with a reader. Developments in radio frequency identification (RFID) technology continue to yield larger memory capacities, wider reading ranges, and faster processing. RFID provides a powerful means of enhancing data handling processes, complimentary in many ways to other data capture technologies such as magnetic stripe. A range of RFID devices and associated systems are available to satisfy a broad range of applications.
However, because RF-enabled devices such payment cards can be read at a distance with a suitable transmitter and receiver, it is possible to surreptitiously obtain information from the card while it remains in its cardholder's possession. In addition to non-contact data transfer, wireless communication can also allow non-line-of-sight communication, meaning that an RF-enabled device may be read while it remains in the cardholder's wallet or purse.